Analysis in FT: If Greece goes, then...

AP Photo/Petros Giannakouris
A Greek man walks past metal sheeting sprayed with a slogan in English reading "Can a revolution be selfish", that covers the facade of a post office branch in Syntagma Square, central Athens, on Monday, May 14, 2012. Greek party leaders are to resume power-sharing talks late Monday as negotiations to create a government drag into a second week, raising the specter of fresh elections that could threaten the crisis-stricken country's international bailout and its membership of the euro.

Τhe idea of a Greek exit from the eurozone is no longer fanciful. After 70 per cent of voters in elections on May 6 supported parties that rejected the terms under which €174bn of international bailout loans were offered to Athens, many investors now see a fissure in the 17-member eurozone as increasingly likely. European governments are furiously thinking through the various scenarios, while still urging Athens to stick to its agreements on austerity and reform. If those hopes are dashed and Greece goes, what happens next?

1. Is Greece serious about quitting the eurozone?

Who knows? Opinion polls showing 80 per cent of Greeks in favour of staying in the euro combine with the election result to offer a scene of confusion.

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May 14, 2012

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